by Eric Flint
Fletcher snorted. The on-going discussion, well, friendly argument, over the merits of democracy versus royalty had provided entertainment and some irritation for the rest of the group.
"Okay," Franz mused, bringing everyone back to the point. "What do we have? So far, we've eliminated Brussels, Groningen, Rotterdam, Haarlem and Hamburg. Neither one of them is willing to let loose of the Wisselbank, it seems. What if they split it? Keep part in Amsterdam and part of it in a city controlled by Don Fernando? After the siege is settled, I mean. Until the siege is settled, they'll have to use one of Don Fernando's cities. Frederik Hendrik doesn't have a city that's suitable, and I'm sure he knows it."
Karl and Don Alfredo considered the suggestion for a moment. "That might work," Karl remarked. "It just might. They would both have it that way, at least eventually."
"Wait a minute," David said. "Why wait for the end of the siege to split the bank? What about this… the Wisselbank is a full reserve bank, and all the reserves are in one place. About a block and a half over that way." David pointed vaguely, and, Karl noticed with amusement, waved in the wrong direction.
"Suppose the reserves were split now," David continued. "It would remain a full reserve bank. The reserves would simply be split between two locations. Part of the reserves stay in Amsterdam and the rest gets moved to a town controlled by Don Fernando. Say Antwerp. That might solve part of the problem."
"True," Karl said. "If all of the reserve goes to Don Fernando's territory, Philip is going to get greedy and demand the silver. Don Fernando would have to either give him the silver or go into open revolt. If all the reserves stay here, people can't get at their silver. That would cause the guilder to collapse, exactly what we're trying to prevent."
"That's just it," Franz said. "If we only move part of it-if we move, say, a third of the reserve, there will still be two-thirds safe here in Amsterdam. With Don Fernando's promise that he won't loot the Wisselbank if he takes Amsterdam, and Frederik Hendrik's promise that Don Fernando won't take Amsterdam, well, the bank will be protected by two armies for as long as the siege lasts. There will be absolutely no way that Philip can get at the silver that remains in Amsterdam. If he grabs the silver in Don Fernando's territory, he'll hurt himself badly. His reputation will suffer just as much as if he'd grabbed the whole lot, but he'll have a lot less cash to gain."
"In fact," Fletcher added, "if Philip takes the silver in Don Fernando's territory, it's the sort of thing that could push Don Fernando into rebelling. Especially since the whole pile won't be in Philip's hands. The silver that stays in Amsterdam will act as a guarantee of the good faith of Don Fernando and his brother."
"Be careful, gentlemen," Don Alfredo advised. "You're coming perilously close to advocating or accusing or something… Well, never mind. But, please, let's keep our speculation to financial matters. For my peace of mind, if for no other reason."
"Certainly," Fletcher agreed and continued. "A chunk of the silver will be in one of Don Fernando's cities and be available for anyone with bank money to withdraw. I think that there should be another part of the agreement, too. There should be an arrangement to move more silver if the Antwerp reserves run low. For that matter, there ought to be an arrangement to shift reserves to Amsterdam if the bank gets a lot of deposits in Antwerp. That would restore most of the confidence in the Dutch guilder, don't you think? The same thing can be done with the lending bank."
"It looks to be the best we can do," Don Alfredo agreed.
Rebecca continued to sit quietly, hands folded in her lap, waiting for Frederik Hendrik to finish thinking. The delegation had made their proposal of a split silver reserve.
Frederik Hendrik looked up, smiling. "I will move the Wisselbank to Antwerp. I'll do it in spite of Herr Gunthor's objections. It is the best choice, given the sureties the merchants suggest. It is a symbolic victory for Don Fernando that doesn't really hurt us, at least not any more than any other city he controls does. Best if I offer it, I think. Your merchants have done a dangerous thing, Rebecca Abrabanel. They have given me a hope to cling to.
"I told you at our first meeting that I would win the siege but lose the war. I wasn't just talking about the war of armies, as you know. Amsterdam can hold out for at least a year. With the warehouses and their contents, we could probably hold out much longer. A year, though, that will be long enough for Don Fernando to see the wisdom of a negotiated settlement. I knew that before the siege closed in. My biggest concern all along has been what would be left of the Dutch Netherlands after the war is over. A siege would not destroy Amsterdam, not really. A year in which all the business that was done in Amsterdam had to be done somewhere else-that would be different. A year in which the bank and the exchange are closed and the merchants have to take their business elsewhere, what effects will that have?
"I'm the leader of a nation of merchants, Rebecca." There was a glistening in Frederik Hendrik's eyes. "Fifty years, at least, is what it would take before Amsterdam recovered, if it ever did. Now, though, if we can reach agreement, it will not be so bad. If the Wisselbank can reopen its doors and the exchange can resume its functions, Amsterdam could recover in a decade, possibly less. For that… I'll throw the dice, Rebecca. For that, I will risk it all.
"I will only allow it if I am provided with concessions in return and not all of those concessions will be from Don Fernando. From him, well, raw materials will be running out soon, and a tradesman must have supplies. The tradesmen also need customers. Perhaps Don Fernando would see his way clear to allow the import of certain items.
"I'm sure he won't allow food to be imported, but with the amount of grain that is stored in the city's warehouses, I am not greatly worried about food. Leather, though, leather for the boot makers and saddle makers, perhaps that might be allowed, I hope, as well as a few other requirements."
Rebecca nodded, heart pounding with hope. Maybe the Spanish prince would see reason.
Frederik Hendrik continued. "I will also need some solid assurance that the bank will not be looted. The splitting of the reserves, it will help, but I will need more. So from you, Rebecca, I need your miraculous radio between here and Antwerp, so that the merchants of Amsterdam may keep in contact and arrange deals and do business. The radio, it will also be a way to confirm that any more silver shipped from Amsterdam does indeed represent silver that has been legally withdrawn from the Wisselbank and not a loan coerced by Philip."
Rebecca found herself holding her breath.
"I am serious, Rebecca. I will not let it go, not without this concession." Frederik Hendrik slapped his hand on his thigh for emphasis, the sound causing her to start a bit and begin breathing again. "I will not."
"I shall see what can be arranged," Rebecca agreed. "I cannot make a promise, you understand. There are many things to be considered."
"I understand." Frederik Hendrik nodded. "But I will not allow this move unless I get what I asked for. Without some point of contact with the rest of the world, Amsterdam's business community will die."
Back in the embassy the news was good. "This is so not a problem, Rebecca." Jimmy Andersen laughed.
"It really isn't," Jeff agreed. "Radio isn't a secret. Long distance communications without great, big towers is the secret. We can get radio for Amsterdam and Antwerp, no prob."
"Not even," Jimmy enthused. "We'll set up a station here and one in Antwerp. We'll put great, big, hulking cables in both places. It'll be neat."
"A CW link," Jeff added, "forty or so words a minute…"
Rebecca felt her eyes begin to glaze over. Techno-geek was a specialized language, one she didn't understand. She escaped as quickly as she could, and let Jeff and Jimmy indulge their preference without her presence.
"Antwerp?" Don Fernando asked, as they walked along. "That is surprisingly generous of Frederik Hendrik. I agree to Antwerp and I appreciate Frederik Hendrik's offering it. Actually, and just between the two of us, I like the idea of split reserves as well. It has political conse
quences that could prove useful. Now, about these trading concessions, what does that Dutch merchant want?"
Miguel stifled a guffaw. "Sire, is it really the proper thing to call another prince a merchant? I'm quite sure he would be offended by this." The garden was mostly dormant at this time of year but it was well-arranged. It was a pleasant place to walk and think, even in winter.
"The man deals like a merchant. If he acts like a merchant, I'll call him a merchant. We are not-and you may tell him so-we are absolutely not, going to allow foodstuffs to be transported into the city, if that's what he wants. Nor will we open our lines while he ships in cannon or shot. Gunpowder is out, too."
"He doesn't ask for that, and I don't believe he would think for a moment that you would agree to it, either. However, he does ask that raw materials, like leather for the boot makers, clay for the potters, be allowed through the lines. And he asks that goods, finished goods, be allowed out."
Don Fernando grasped his head between his own hands and pretended to tear his own hair. "Gah! What did I call him? A merchant, wasn't it? This is a military operation, is it not? We are here to take the city, are we not? And yet Frederik Hendrik wants to continue to do business, even through a siege? I am astounded, truly astounded."
Miguel couldn't hold the guffaw back any longer. He broke into laughter, and laughed until the tears ran down his face. Don Fernando, after one amazed look at his usually serious aide, began to laugh also. At first, it was only a small snicker, but it grew and grew, until he, too, was laughing uproariously.
Don Alfredo, who most definitely was a merchant, and quite a good one, waited patiently for the mirth to subside. Eventually, Don Fernando wiped his eyes and calmed down a bit. Still trying to repress more laughter, he said, "Well, Don Alfredo, what do you say to the merchant of Amsterdam's latest proposal?"
"I can't speak to the military effect, Your Highness, but speaking as a merchant, I would think it a very good idea. I will go further, even. What do you want when you have taken Amsterdam? Do you wish a denuded city that will take decades to recover from the siege, like Antwerp? Or would you prefer a prosperous city, one that has not been destroyed?"
"Very well." Don Fernando sighed. "I will allow raw materials through the lines, after the wagons have been thoroughly inspected, and I will allow goods to be exported, as well. However, I will allow export only if my army is allowed to purchase goods as well. After all, equipment does wear out, you know. I, myself, could use a new pair of boots. Why not allow it, after all?"
Don Alfredo looked a bit pained, like he wanted to say something or perhaps use the toilet. "What is it, Don Alfredo? You think I ask too much?"
"You do not ask enough, Your Highness, not nearly enough. Remember… taxes. Taxes on everything that goes in," Don Alfredo waved his hand one way, "and taxes on everything that comes out," he waved his hand the other. "You are the rightful prince, Your Highness. It's only your due. And since you are a good and gracious prince, you don't want your subjects to suffer under a harsh or usurious double tax.
"I believe you should suggest that Frederik Hendrik must stop taxing imports and exports from Amsterdam. He will not agree to this, of course, so a compromise must be reached. A compromise that will insure that the taxes are fair and reasonable, I hope. Your Highness will receive some needed revenue. True, Frederik Hendrik will receive some revenue, but he is trapped in Amsterdam."
No one was laughing now, but slowly Don Fernando and Miguel began to smile. Most of Don Fernando's advance into the Dutch Netherlands had been stopped not by lack of arms but by lack of money and supplies.
"I will consider this proposal. Of course, we will have to make some arrangements for the future, after I have succeeded with this siege." Don Fernando nodded. "You have served Spain very well this day, Don Alfredo. Now I want you to tell me what the results of this agreement will be."
"The Wisselbank is still the Wisselbank," Don Alfredo said. "Now, though, it will have offices in Antwerp and an extra army in defense of most of its reserves. Antwerp already has an exchange, true. The addition of the Wisselbank and the lending bank will go a long way toward helping Antwerp in its recovery. With the trade agreements, the small merchants and tradesmen of Amsterdam will stay in business.
"The taxes both to you and to Frederik Hendrik will continue supporting your armies. Eventually, you will take Amsterdam or reach an agreement with Frederik Hendrik and, through it all, business will go on. The people of the Low Countries, Spanish and Dutch, will suffer less than in most wars. Probably much less."
Don Alfredo got a thoughtful look and seemed to be more thinking out loud than speaking to the prince. "I think someday there will be a statue in Amsterdam, of you and Frederik Hendrik shaking hands. Something like that, anyway. I believe that someday the history books will call you 'the wise.' "
***
"As I said, Rebecca." Frederik Hendrik smirked. "I knew that Antwerp would be accepted. What is your answer to my requirement?"
"It turns out that it will be no problem at all. We will use 'great, big, hulking cables' as Jimmy Andersen describes them. They will be attached to already standing towers here and in Antwerp. That way, even the presumption that we need obvious means to transmit over long distances will be preserved. It will be expensive and you and Don Fernando will have to bear the cost. On the other hand, you will make back the cost of introduction in no more than a year of regular use. Or so I am compellingly informed by Fletcher Wendell and David Bartley."
Frederik Hendrik smirked some more. "Marvelous." He rubbed his hands together in anticipation. Every agreement he could make now was a step toward the larger agreement that would end the siege. Further, each agreement made the siege less damaging to Amsterdam and the Dutch Netherlands in general.
Then Rebecca told him about the taxes Don Fernando had suggested. "Who is advising that pup, Rebecca? Whoever it is I want him assassinated. No, even better, I want to hire him." He laughed.
The counteroffer was subtle. If he agreed, the siege of Amsterdam would become much less of a drain on Don Fernando's resources, a result that Frederik Hendrik preferred to avoid. Unfortunately, he knew he had to agree to this compromise. It was a good one, and would allow Amsterdam's craftsmen to continue their work. They would be able to keep their shops open, and do more than just survive the siege. The merchants would come out of the siege whole, or at least close to it. Amsterdam produced a lot of finished goods, and would now be able to continue to sell them.
Frederik Hendrik was almost sure now that when the siege of Amsterdam ended it would be through negotiations, not combat. Don Fernando was someone he could negotiate with. "We will be haggling over the amount of tax to go to each prince for some time. We will also haggle over who will collect the taxes and where, I expect. When do you expect the radio equipment from Grantville? The Wisselbank and the lending bank need to reopen their doors to merchants outside of Amsterdam."
"Messages have already been sent to Grantville and the messengers will find the providers unusually prepared, I'm told. All by chance, of course." Rebecca smiled. "There will be supplies that have been collected for other uses available. Fortunately, they'll be ready to go.
"I warn you, this will not be cheap," Rebecca continued. "The radios must be made from expensive up-time parts and involve long steel cables. Then there are the batteries and a generator for power and regular maintenance. All these things will cost money, and a good bit of it. Once it is done; however, communication between Amsterdam and Antwerp will be nearly instantaneous."
"It depends on what you're ordering," David Bartley told David Heesters. He had been meeting regularly with Amsterdam's factor for OPM since the party had first been allowed access to Amsterdam. "If it's local items, you're probably going to have to order it through the Spaniards. Anything else will have to go through Antwerp."
"Antwerp?"
"That's where they've decided to establish a branch of the Wisselbank."
"There will be people wh
o won't like that," Herr Heesters pointed out. "Much of Amsterdam's success was, in a sense, stolen from Antwerp. People will be afraid Antwerp will steal it back." They were sitting in Herr Heesters' office in his townhouse. There was a Van Dyck on the wall, David noticed.
"You see, at the beginning of the war, the Spanish were very hard on anyone who was not Catholic and unpaid Spanish troops sacked the city. Many of the merchants of Antwerp escaped to Amsterdam. They came here, where it was safer to practice their faith and where they could do business without the Spanish inquisition poking its nose where it didn't belong. Later, Antwerp was blockaded by our fleet as part of the war for independence. Our stock exchange was actually copied from theirs, as well.
"Now it looks like things are going full circle. We are besieged and the Wisselbank is opening a branch in Antwerp. God has an interesting sense of humor, don't you think?"
"Yes," David answered, all the while thinking about airplanes, fast food and the Internet. "The Ring of Fire and its consequences are proving to be quite… unusual."
"Damn it," Fletcher exploded. "I have a wife and two daughters back in Grantville, not to mention a job. Why is it us that have to go to Antwerp?"
"We're the people they can agree on," Don Alfredo answered. "Frederik Hendrik has few people he can trust and he needs most of them where they are. Most of the city council fled when the siege began. Don Fernando is not allowing just anyone to leave Amsterdam, but we can go. This is only reasonable in a siege, as you know, since the point of a siege is to keep people in. We have freedom of movement, citizens of Amsterdam do not."
"Coleman, have you heard the latest?" Henry Dreeson asked. "The guilder is going up again. It seems like the mission to Amsterdam has been a success, at least so far. We're hearing good things."
"I've heard all sorts of things, Henry," Coleman answered. "I've heard that orders for the Higgins machines are coming in. Trust that group to take care of themselves, all right."
"You're being a little uncharitable, aren't you, Coleman? Of course, David Bartley and Franz Kunze are going to take care of the HSMC and OPM. He's a businessman and that's what people in business do. The guilder is going up, that's the important thing," Henry pointed out. "It was only, what, a few months ago that we were worried about it falling forever?"